Musk uses SpaceX like a piggy bank…borrows and repays hundreds of billions of won

"Musk uses SpaceX like a piggy bank... borrows and repays hundreds of billions of won"

NYT obtains and reports on internal documents... also provided funding to other companies he owns, such as SolarCity and xAI

It has been confirmed that Elon Musk personally borrowed hundreds of billions of won from SpaceX, the aerospace company where he serves as CEO, and also provided funds to his other companies.

The New York Times (NYT) reported on the 24th (local time) that after obtaining and analyzing internal company data and testimonies from officials, Musk borrowed $500 million (approximately 738.8 billion won) from SpaceX on three occasions between 2018 and 2020.

Interest rates were sometimes less than 1% and sometimes set at around 3%. Considering that the prime interest rate for commercial banks at the time was around 5%, he borrowed money under much more favorable terms. The collateral was SpaceX stock, and the repayment period was 10 years.

According to internal documents, this loan was specifically executed for the CEO, and the approving authority was not disclosed. It was also not specified how Musk used this money.

Musk reportedly repaid the loan principal and $14 million in interest by the end of 2021.

Musk not only took out personal loans but also channeled funds from SpaceX when other companies he leads ran out of cash.

Electric vehicle maker Tesla, solar energy company SolarCity where he is a major shareholder, and artificial intelligence venture xAI all borrowed money from SpaceX.

When Tesla faced risks during the 2008 financial crisis, SpaceX provided $20 million. In 2015, SpaceX invested $255 million by purchasing SolarCity corporate bonds, which were deemed to have a high risk of default. Most recently, SpaceX acquired xAI.

Regarding this behavior, the NYT pointed out, "When Musk needed $100 million, he didn't call a bank; he went to SpaceX," adding, "He has used SpaceX like a piggy bank for the past 20 years."

Musk's support for other companies through his own companies has been confirmed multiple times in the past.

Bloomberg recently reported that SpaceX purchased 1,279 units of Tesla's expensive pickup truck model, the Cybertruck, driving sales performance.

This was possible because SpaceX was a private company, but it is expected to become more difficult in the future. SpaceX is preparing for an IPO in June.